Personal Articles Floater

Example

“After inheriting her grandmother's diamond ring worth $15,000, Jennifer purchased a personal articles floater to ensure it was fully covered against theft, loss, and accidental damage.”

Memory Tip

Floater = Follows your treasures wherever they Float around - special coverage that moves with your valuables.

Why It Matters

Standard homeowners insurance typically limits coverage for valuable items to $1,000-$2,500 and excludes many perils like accidental loss. A personal articles floater ensures your most precious possessions are fully protected at their actual value, preventing significant financial loss if something happens to irreplaceable items.

Common Misconception

Many people think their homeowners insurance fully covers expensive jewelry and collectibles, but standard policies have strict sublimits and exclusions for these items. Without a floater, you might only receive $1,500 for a $10,000 engagement ring, even with receipts proving its value.

In Practice

Tom owns a $8,000 watch, $12,000 in camera equipment, and a $5,000 coin collection. His homeowners policy only covers $2,500 total for these categories. He purchases a personal articles floater for $300 annually that covers all items at full value with no deductible. When his watch is stolen during travel, he receives the full $8,000 replacement cost, whereas his homeowners policy would have paid only a fraction of that amount.

Etymology

The term 'floater' comes from marine insurance, where cargo that 'floated' from ship to ship needed flexible coverage; in modern insurance, it refers to coverage that 'floats' with valuable items regardless of location.

Common Misspellings

Related Terms

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